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Find the velocity given that the market is in equilibrium. MD1 is the relevant curve and it is given that the real GDP is 30,000.
I know you find velocity with the equation V= PY/M...P being the price level, Y being real output, and M being the money supply. The money supply is at $5000 on the graph. What do you use for P and Y?
If the price of manufactured goods rises to $6 bushel (a rise of 50%), the parity price of corn as well rises by 50% - to $4.50 in this hypothetical example.
What is the difference between contractionary and expansionary monetary policy?
Explain International Monetary System
This document shows evaluation of alternative approaches to analysing the effectiveness of public policy and Assess the impact of government policies on selected areas.
Describe what effect an expansionary fiscal policy would've on the price level and real GDP starting from full employment equilibrium.
What is Bill's opportunity cost of producing one hat, In which of the two activities does Mary have a comparative advantage.
What distinguishes money from other assets in the economy? What are demand deposits, and why should they be included in the stock of money?
Discuss how absolute advantage and comparative advantage differ? Kyle can read 20 pages of the economics in an hour. He can also read 50 pages of history in an hour. He spends 5 hours pre day studying. Draw Kyle's production possibilities fron..
Describe the following statement: "In competitive market the least-cost production methods are revealed by entry and exit, while in public utility regulation they're revealed by commission rate hearings. It is easier to fool commissi..
Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?
Discuss the relationship between each of the following variables based on the experience of U.S. economy over the past 30 years.
A profit-maximizing monopolist never produces in the inelastic part of a linear demand curve. The short-run supply curve of a competitive firm is its MC curve.
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